By Sam Forgione and Phil Wahba
NEW YORK Feb 26 Billionaire investor Carl Icahn
and eBay Inc took their war of words up a notch on
Icahn, who last month called for eBay to sell off its
fast-growing PayPal payments business, called corporate
governance at the e-commerce giant "dysfunctional" in his second
letter to eBay shareholders this week.
The activist investor, who has a 2.15 percent stake in eBay,
promised to lay out a detailed case for spinning off
fast-growing PayPal in coming weeks. He sent an open letter to
eBay shareholders this week accusing two company directors of
conflicts of interest.
"We believe corporate governance at eBay is dysfunctional.
Let's end this charade," Icahn said in his latest letter to eBay
shareholders. He urged shareholders to vote for his slate of
directors and in favor of his spinoff proposal at eBay's annual
shareholder meeting this year.
EBay responded with a statement headlined "Stick to the
facts, Carl" and accused him of deliberately spreading claims
that are "dead wrong."
Icahn said on Monday that two longtime board members, Marc
Andreessen and Scott Cook, had business interests that directly
competed with eBay. ]
"Carl Icahn doesn't let the truth get in the way of a good
story," eBay said in response to Icahn's latest letter.
Icahn, chairman of Icahn Enterprises L.P., is known
for taking large stakes in companies and pushing for management
change. He was not immediately available for comment.
EBay shares were up 2.6 percent to $57.60 in afternoon